Top Floor at Harbor Square
New listing!!!
4876 Rose Avenue NE
Bainbridge Island, WA 98110
OPEN SUNDAY, May 1st 1pm to 4pm
Offered at $998,000
Beautiful property and exquisite home, just a short stroll to parks and trails to Blakely Harbor. Stone fireplace warms the great room extending into the grand open kitchen inspiring culinary performances and memorable gatherings. This fabulous home features boxed beam ceilings and painted pine walls, custom furniture grade cabinetry, soapstone counters and select quarter-sawn floors, offering casual comfort of Island life and the charm of a bygone era. Timeless, function and value throughout! NWMLS #931429
For more information and to preview the photo gallery, please click HERE
2016 1st Quarter Newsletter
The Same Old Tune
Even as the birds of springtime sing their new songs of the season, we must hit repeat as we report – once again – on our local market’s low inventory. A lack of available homes continues to dictate what’s happening in Bainbridge Island real estate. On April 1st, there were only 47 homes and 5 condominiums available for sale on the island. Within the overall market, certain price points have been more pinched than others (which is a snapshot in time and will change as the year goes on). For example, if you were looking for a home in the $600K to $800K range, you had only 5 houses to choose from and zero condominiums.
How Inventory Affects Sales and Prices
This extremely limited inventory helped drive home sales down more than 20% from last year. There are plenty of buyers out there; there are just not enough properties on the market to sell. The scarcity of inventory has increased competition and bumped median prices up more than 9%. The average, which is more a function of the price ranges where homes closed, was up more than 18%. The median cumulative days on market dropped from 26 in 2015 to 20 in 2016. To put this in perspective, the cumulative days on market in 2012 was 146 days.
The Story on Condominiums and Land
The condominium market is also suffering from lack of inventory. Last year at the beginning of April, there were 16 condominiums available compared to this year’s 5; both of which lie in sharp contrast to 2012, when there were 45 available. Consequently, sales dropped from 19 to 16, but the median price rose 23% to $430K. Land, on the other hand, experienced a 30% increase in sales to 13 parcels this quarter with a 26.8% increase in the median price to $225K.
The View from Inside
One might assume that a market like this, with rising prices and inventory competition, makes our jobs easier. The reality is that there are some basic principles, goals and strategies that any good real estate professional seeks to embrace, all of which must adapt to an ever-changing market. Regardless of the climate, we want our clients to achieve the best possible outcomes – both at closing and in the future. This is sometimes easier said than done, especially when competition is fierce and time is of the essence. Given the complexities of the Bainbridge market, where most homes and locations are unlike any others, things can get even more challenging. It is not like buying or selling in a large subdivision where a product like Zillow has some merit. Here, each house has strengths and weaknesses and the success of a sale can pivot on those subtle nuances.
If you’re a Buyer
For buyers in this market, supply is tight and prices are rising. You almost have to assume you will be competing with others when you find the house you would like to make your home. Is the price fair? How high should you go? The specter of 2006 and 2007 should be in the back of your mind, as the concept of paying “whatever it takes” came back to bite many homebuyers. An agent brings knowledge of the current market, the choices it offers, what might be coming and how an individual house fits into the bigger picture – including the history of the neighborhood and often of the house. An agent will know whether a price is in line or whether the seller is being aggressive. When there are limited comparable properties, this expertise becomes extremely important. No one wants to hear, “You paid how much for your house?!”
In multiple offer situations, there are strategies to employ. You need to line up your resources to be “the best you can be.” Multiple offers often require that decisions be made quickly, so being prepared makes you a stronger buyer and one less likely to be disappointed later. If you are not a cash buyer, there are things you can do to compete with those who are. Get comfortable with the stack of forms you’ll be asked to sign. Ask your Realtor what it means to omit certain forms, how to read building inspection reports and Title reports. Learn how to spot red flags that make certain houses less expensive. Being a buyer in this market can be difficult, frustrating and even scary. A good agent can help you navigate the winding road to achieve the best results and avoid mistakes.
If you’re a Seller
Sellers may think they have it easier, but the reality is that a seller’s quest is the same in an ascending market as in a descending one. The two primary goals for sellers are to get the home sold in the timeframe desired and to maximize net proceeds. Buyers will be more attracted to, and will ultimately pay more for, a house that is optimized to appeal to a buyer and priced in a manner that a buyer feels is reasonable in the current market. Knowing the current market, as well as past and future markets and how a particular home fits into all of them, is essential in achieving the seller’s ultimate goals. But the work is just beginning when buyers first express interest. You have to know which of them will have the greatest possibility of actually achieving a closed transaction. It is surprising how many transactions fall apart in this market. Negotiating inspections, Appraisals, Sellers’ liability; what do all those forms mean and what are your responsibilities? There are many steps between deciding to sell and achieving your goals. The reality is that sellers don’t always get everything they hope to get out of a sale – even in a sellers’ market. But an experienced agent will help you prepare, present and respond so you can get the most out of any market.
The Constant
Real estate markets fluctuate all the time, sometimes favoring buyers and sometimes favoring sellers. This is simply the nature of the business. But in the midst of all those ups and downs, one thing remains consistent: the beauty and livability of Bainbridge Island. At Windermere Bainbridge, we celebrate our island community and all it has to offer.
2015 3rd Quarter Newsletter
Make your home offer irresistible
When you're competing with a lot of other buyers for a hot piece of property, your bid needs to stand out.
You have found a home you can afford, in a great neighborhood with good schools. It even has a fenced-in yard for your dog. What could go wrong?
Any number of things, ranging from a competing buyer's all-cash offer to an insufficient earnest money deposit from you. In markets with houses in short supply, sellers have the advantage over buyers, and bidding wars often erupt between buyers vying for the nicest properties. The purchase offer should persuade sellers that your buyers are a serious contender who will give them most of what they want, even as it protects the buyer’s interests.
1. Pay cash. Investors have been snapping up homes to flip or rent, and they usually come to the table with cash. Sellers love all-cash offers because they're less likely to fall through before the sale closes. In January, all-cash transactions accounted for 28% of existing home sales, according to the National Association of Realtors. Cities currently attracting strong investor interest include Atlanta, Detroit, Las Vegas and Phoenix, reports CoreLogic. If you need a mortgage, a low appraisal could cause your bank to back out of the deal, forcing the sellers to put the house back on the market.
2. Get preapproved. If you can't pay cash, you'll need to get a mortgage. Three or four months before you shop for a home, check your credit reports, says Michael Corbett, a consultant to real estate Web site Trulia and author of "Before You Buy!" That will give you time to dispute any errors and take short-term steps, such as paying off debts, that will improve your credit score. You can get your reports once a year free from the three major credit bureaus at www.annualcreditreport.com. Then get a bank's preapproval. It won't guarantee that you'll get a loan, but it will show sellers that a lender has verified your income and credit score and determined that you can afford payments on a mortgage for a certain amount.
3. Make your best offer on price. You may only have one shot to get it right, so make your best offer — what you're willing and able to pay. Base your offer on recent sale prices of comparable properties in the neighborhood so that it will pass muster when the property is appraised. If you hold back, thinking you'll sweeten the offer on the second try, you may lose the property to another buyer.
4. Up the ante. You can add an escalator clause, with which you agree to ratchet up your offer if there's a higher bid from another buyer. Keep in mind that if you agree to pay more than the market value determined by an appraisal, you're on the hook for the difference from your own funds.
5. Beef up your earnest money. This deposit signals how serious a buyer you are. Try doubling the amount that the seller requests or that is customary in the area. If you must renege on the offer for any reason allowed by the contract or state law, you'll get your money back.
6. Pay for extras yourself. These might include some of the closing costs, homeowners association dues that must be prepaid, a one-time contribution to a community-enhancement fund, or a home warranty.
7. Make contingencies palatable. Most sellers prefer offers with no contingencies, but you probably can't afford to forgo the protection that contingencies provide if you want to cancel the contract. Offset a financing contingency with preapproval and a strong earnest money deposit. If you have enough cash, temper an appraisal contingency by assuring sellers that if the appraisal comes in lower than the purchase price, you'll pay the difference or split it with them (up to a certain amount). Include a home-inspection contingency, but tell sellers that you will cover the cost of any repairs. If the price tag on those repairs gets out of hand, you can back out of the deal.
8. Write a love letter to the sellers. Re/Max agent Gayle Henderson, of Scottsdale, Ariz., says this will help you connect with the sellers, especially if you haven't met them. She suggests such points as: "We're relocating from…" "We see ourselves living in your neighborhood or chose your schools because …" "We especially love …" and "We appreciate your accommodating our visits."
9. Give the gift of time. Express your willingness to work with the sellers' timetable to go to closing. If the sellers want to remain in the home for a while after closing, offer them a "lease back" or "rent back," which means that you will be their temporary landlord. This is a legal arrangement, and you'll need to work out the details with your agents and be sure that the sellers keep their homeowners insurance during their stay. If you are bidding on a short sale, make clear to the sellers that you are patient and can wait for the bank's decision.
Download a PDF of this blog post here: JACKIE98110_Make_your_home_offer_irresistible
Bainbridge Island Real Estate Sales in Review
RESIDENTIAL HOME SALES IN REVIEW
YEAR Avg. Sale Price Total # of Sales Avg. Days on Market
2003 $481,758 454 101
2004 $551,462 468 92
2005 $670,004 442 91
2006 $752,154 349 87
2007 $820,607 317 97
2008 $749,970 187 108
2009 $662,668 212 139
2010 $639,169 255 102
2011 $581,855 257 113
2012 $636,705 384 101
2013 $599,116 414 75
2014 $706,275 401 65
CONDOMINIUM SALES IN REVIEW
YEAR Avg. Sale Price Total # of Sales Avg. Days on Market
2003 $304,874 73 165
2004 $302,123 157 185
2005 $381,143 74 55
2006 $359,040 150 89
2007 $459,756 129 218
2008 $458,383 42 107
2009 $366,369 53 176
2010 $326,174 53 214
2011 $289,338 67 212
2012 $296,702 80 147
2013 $328,139 93 117
2014 $384,416 100 60
LAND SALES IN REVIEW
YEAR Avg. Sale Price Total # of Sales Avg. Days on Market
2003 $211,651 106 233
2004 $187,045 104 254
2005 $292,644 87 216
2006 $460,802 53 183
2007 $378,295 30 164
2008 $421,728 15 124
2009 $433,500 11 291
2010 $172,625 24 175
2011 $233,405 20 182
2012 $216,672 32 159
2013 $197,453 52 315
2014 $249,267 43 209
So you’ve begun thinking about selling your house and you figure: Let’s wait until spring or early summer before listing. The yard will look its best and potential buyers will be out in force. Recent research studies show home listing prices, sales price and time-on-market data from January 2010 through October 2014, concluded that if you want to sell for more than your asking price, listing in December through March gives you a better chance on average than if you list June through November. If your goal is to sell relatively quickly, February is historically the best month to list, with an average of 66 percent of homes listed then selling within 90 days, according to national averages, including cold weather cities like Boston and Chicago.
Researchers are quick to note that the advantages of listing in winter compared with other seasons are not huge. But the fact that winter produces at least competitive or better results by some measures should encourage potential sellers to get into the game sooner rather than later. Bottom line: Real estate does not hibernate. Other factors to consider: Only 63 Homes, 8 Condominiums and 53 land parcels currently For Sale on Bainbridge Island. Less Inventory = Less Competition for Sellers who list prior to spring. This is surprisingly an advantageous time to list, shop and buy Real Estate. Buyers shopping at this time of year are Serious Buyers. More Corporate Transfers at this time of year. Buyers have more time to surf the web for homes.
What are your real estate goals for 2015?
Call me for a Current Market Analysis and I will provide you with an honest, fact-based report of the financial value of your home.
Fay Bainbridge State Park
Fay Bainbridge Park is a 17-acre marine camping park with 1,420 feet of saltwater shoreline on the northeast corner of Bainbridge Island. The park offers sweeping views of Puget Sound, the Cascade Mountains and features sandy beaches. On clear days, Mount Rainier and Mount Baker are visible from a sandy beach.
Besides the amazing beachcombing, Fay Bainbridge also has sheltered Picnic areas with water and electricity, a large playground and camping!
While it is free to access the park, there are nominal fees for camping and use of the large shelter areas. There are plenty of open picnic tables all over the park that are free to use – first come first served!
For more information on this lovely treasure, go to the Bainbridge Island Parks Department website:
http://www.biparks.org/parksandfacilities/pkfaybainbridge.html